A Company Issues a Callable (At Par)ten-Year Coupon Bond with Annual

Multiple Choice

A company issues a callable (at par) ten-year coupon bond with annual coupon payments.The bond can be called at par in one year after release or any time after that on a coupon payment date.On release,it has a price of $102.50 per $100 of face value,and has a yield to call of 4.8%.What is the bond's coupon rate?

A) 5.12%
B) 4.8%
C) 7.10%
D) 7.42%
E) 8.54%